RenuEn Corp Withdraws From St. Cloud Landfill Project
RenuEn Corp Withdraws From St. Cloud Landfill Project
ST. CLOUD, FL--(Marketwired - Oct 24, 2013) - RenuEn Corporation
(OTC Pink: RENU) a Renewable Energy Development Company, announced
today that their wholly owned subsidiary Team Energy, Inc. has
notified the City of St. Cloud that they are withdrawing from the
development and construction of the St. Cloud Landfill project. In
addition, the company announced that it has filed a lawsuit in the
Circuit Court of the Ninth District in Orange County Florida
against HSA Golden Engineering for breach of contract, negligence,
professional malfeasance, excessive billing, quantum merit and
unjust enrichment.
Don Wood, CEO of RenuEn stated, "I am very disappointed that
after 3 years of hard work trying to get this project completed, we
had to finally walk away. Although we were fully prepared to
proceed with the project, the gross negligence of our past
engineers, as well as the added burden of an automatic termination
clause if 'substantial work' was not completed by November
14th has overwhelmed any financial upside we could have
achieved. The time element that the City placed on us, the lack of
definition as to what 'substantial work' entailed, coupled with the
fact that some of the Council Members did not fully support this
project meant we had no buffer to avoid severe financial penalties.
The most severe impediment to this project was that HSA Golden
failed to address substantial life safety issues in the initial
drawings. This hindered our ability to obtain the final
construction permit. When HSA refused to provide us with the work
product that we paid for, it forced us to begin the engineering
process from the beginning. Combined, these factors became too
large of an issue with our investment and equity partners,
ultimately leaving us with no other choice but to terminate this
project."
Woods further states, "We have filed a lawsuit against HSA
Golden seeking damages in excess of one million dollars. We feel
that their gross incompetence caused delays that essentially
crippled us in our ability to start this project."
Jeff Nemes, COO of RenuEn states, "Although this cancellation is
very frustrating, we have already identified, and are in late stage
negotiations and testing of a larger, more profitable landfill in
Florida. All of our finance and equity partners are committed to
supporting this landfill. This landfill will actually be less
costly to construct since it is an open landfill versus a 'closed'
landfill like St. Cloud. The potential profitability to the company
and our shareholders is much greater. An open landfill with a
constant and continuous feedstock has a much more predictable
performance and is subject to less degradation over time and can
last many more years than the ten year prediction of St.
Cloud."
Nemes Further stated, "The St. Cloud landfill is only one small
piece of the growth model for RenuEn, and the withdrawing from the
project will not have a negative impact on the financial growth of
the company. In fact, we are having substantial success with our
Energy Solutions division and we are in negotiations to build a
fueling station to support clients who wish to convert their fleets
to CNG. We will be updating the shareholders on the status of
sales, revenues and growth projections on our next conference call
which will be announced at the filing of our 3rd Quarter
report in the next few weeks."
About RenuEn Corporation
RenuEn Corporation is a Renewable Energy Development
company. The company focuses on Landfill Compressed Natural Gas
capture, International Renewable Power projects and the development
of solar, geothermal and other renewable energy strategies.
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